A reader, KMS, has rendered his comments regarding my latest posting via e-mail to me. I know he has been following closely on news pertaining to market and economic developments taking place in various parts of the world. It is only fair that I reproduce his comments now for the benefit of other readers. Let's treat the subject as part 2 of the same topic. Below are his opinions.
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"Jimmy, good article. The problem with Europe is not necessarily bad management. Spain, Ireland, Italy all have surplus budgets but the current credit squeeze is killing them.

As for Greece, the solutions, I think, should be sorted into short term and long term solutions. Short term, economic growth is paramount to get the economy moving. Austerity on the other hand is going to kill off any growth in the economy.

Austerity should be a long term objective, but it will be painful and requires, not only the political will, but the collective will of all its citizens. Otherwise, the well intended politicians will be out of office.

Increasing taxes has its debates. It has been statistically shown that increasing the rate of tax does not deliver more tax revenues. On the contrary, lowering taxes to a flat rate is supposed to be the better solution. Don't forget that Greece is well known as tax evaders. In any case, I don't believe taxing the rich more is fair."


Jimmy's note: I thank KMS for his response.